Global food price increases and volatility

Global food prices continue to rise month after month, driven by longer-term and more recent trends. Financialisation is an important factor among the recent trends. There is strong evidence of correlation among the markets for different financial assets, including stocks/shares, commodities and currencies. Falling asset prices in other financial market segments may thus be more important for explaining the recent surge in food prices than supply constraints or changing demand and other factors underlying longer-term gradual upward price trends.